According to new research commissioned by the country’s peak member body for the ICT industry, the staff attrition rate in Australia’s tech industry is running at unsustainably high levels. The data from the Australian Information Industry Association’s (AIIA) latest biannual Aon Survey of Salaries & Remuneration Packaging Remuneration Report on the local tech industry has revealed higher average salaries and staff attrition rates, compared to previous years.
According to the AIIA, a primary concern arising from the study was the current rate of staff attrition, both voluntary and involuntary which was running at an unsustainably higher level of 21.7 per cent.
AIIA CEO Ron Gauci said, “The results indicate healthy salary growth in the technology industry, the high rates of attrition are certainly an area of concern. This issue needs to be addressed if we are to foster a stable and productive industry in Australia.”
The AIIA suggested that, even though using pay to reduce erosion can be a quick fix, a broader focus on employee value propositions can lead to a longer-term reduction in erosion rates. These propositions could include benefits, financial wellness and flexibility is considered. However, the survey found that salaries are on the rise in the industry, with total remuneration increasing, on average, by 2.9 per cent over the past 12 months.
It should be noted, however, that there are wide variations by sub-sector, with software-related salaries higher, at 3.9 per cent. According to the data, early forecasts for 2020 are slightly tighter at 2.5 per cent, indicating some conservatism given the tightening economic environment.